Reddit investor forum WallStreetBets, which helped drive the trading frenzy in videogame retailer GameStop Corp.’s (NYSE:GME) stock earlier this year, has reinstated a ban on all cryptocurrency discussion less than 24 hours after allowing a crypto discussion thread with restrictions.
What Happened: The ban was reinstated on Thursday after a story by Bloomberg said that WallStreetBets had bowed to the crypto wave.
“Due to the article that was written @bloomberg who somehow felt that ‘WallStreetBets Bows to Crypto’ Crypto discussion is banned indefinitely. I’ve read a lot of dumb articles written about wsb. This one takes the cake,” a post from moderator “bawse1” on the site said.
See Also: Robinhood Sees Brief ‘Major Outage’ For Crypto, Several Users Unable To Trade Dogecoin
Why It Matters: WallStreetBets gained attention earlier this year as retailer traders belonging to the forum bid up the stock of videogame retailer GameStop and other heavily shorted stocks such as AMC Entertainment Holdings Inc. (NYSE:AMC) to create a short squeeze.
Cryptocurrency as a topic was banned on the Reddit forum for several years as members did not want the focus to deviate from the discussion about publicly traded stocks.
That changed on Wednesday when the moderators of the forum said they would allow discussions on Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE) — but no other cryptocurrency — inside a daily Crypto discussion thread.
The decision came after cryptocurrency exchange Coinbase Global Inc. (NASDAQ:COIN) made its high-flying debut on the Nasdaq stock exchange on Wednesday.
The world’s two largest cryptocurrencies by market capitalization — Bitcoin and Ethereum — recently hit new all-time highs. Bitcoin touched a never-before-seen level of $64,863.10 on Wednesday and Ethereum hit an all-time high on Thursday of $2,547.56. Dogecoin hit an all-time high of $0.2917 late Thursday, lifted by the social media buzz around the meme-centric cryptocurrency.
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